NLMK Board of Directors recommends dividends for Q3 2018

At a meeting held on 25 October 2018, NLMK Group’s (LSE: NLMK) Board of Directors recommended the Company’s shareholders approve payment of Q3’18 dividends of RUB 6.04 per share at the upcoming Extraordinary General Shareholder Meeting (EGM) which will be held on 21 December 2018.

NLMK Group’s Board of Directors recommended NLMK shareholders approve Q3’18 dividends of RUB 6.04 per share, which is equivalent to 86% of the Company’s free cash flow based on its IFRS consolidated results for 3Q’18. Q3’18 dividend yield* will total 14%.

Taking into account dividends accrued in Q1&Q2 2018, 9M 2018 dividends will total approximately 100% of the Company’s free cash flow for the corresponding period.

The Board of Directors also recommended that shareholders set the date upon which the shareholders entitled to Q3’18 dividends will be determined as 9 January 2019.

The list of persons entitled to participate at the EGM will be compiled as of 26 November 2018.

For reference:
Previously, at the Extraordinary General Shareholder Meeting held on 28 September 2018, NLMK shareholders approved the payment of Q2’18 dividends of RUB 5.24 per share.

Aggregate Q1’18 and Q2’18 dividends amounted to RUB 10.97 per share.

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* Dividend yield is calculated as the sum of dividends for the period converted at the exchange rate at the end of the reporting period, annualized by multiplying the amount for the quarter by 4 and divided by the total market capitalization of the company on the last day of the relevant period.

NLMK Group is the largest steelmaker in Russia and one of the most efficient in the world.

NLMK Group’s steel products are used in various industries, from construction and machine building to the manufacturing of power-generation equipment and offshore windmills.

NLMK operates production facilities in Russia, Europe and the United States. The Company’s steel production capacity exceeds 17 million tonnes per year.

NLMK has the most competitive cash cost among global manufacturers and one of the highest profitability levels in the industry. In 9M 2018, the Company generated $9 billion in revenue and $2.3 billion in EBITDA. As of 30 September 2018, Net debt/EBITDA stood at 0.25х. The company has investment grade credit ratings from S&P, Moody’s, Fitch, and RAEX (Expert RA).

NLMK’s ordinary shares with a 16% free-float are traded on the Moscow Stock Exchange (ticker "NLMK") and its global depositary shares are traded on the London Stock Exchange (ticker "NLMK:LI"). The share capital of the Company is divided into 5,993,227,240 shares with a par value of RUB1. For more details on NLMK shareholder capital, please follow the link.

The jury of the prestigious S&P Platts Global Metals Awards held by S&P Global Platts, a leading international industry analytical periodical, announced NLMK Group as a winner of the Industry Leadership Awards – Steel in 2016, and awarded it the CEO of the Year in 2018.